The PCE inflation data report tonight will be the focus of gold market players. The impact of the data report can provide significant movement to the gold market. Any increase in PCE Inflation data tonight can provide a "booster" to the American Dollar index.
Market sentiment at the moment sees if the FED implements a reduction in interest rates at the end of 2024 it is seen to be able to have a positive impact on the country's economy.
Several American economic reports yesterday seemed to support the above sentiment. Fed committee member Raphael Bostic yesterday held a meeting and stated that the Fed's expectation to implement a one-time interest rate cut in 2024 may happen when several inflation indicators in the country are seen to be in the right direction so far.
Therefore, market players are currently looking at the implementation of interest rate cuts of 45 basis points in the fourth quarter of this year.
Technical Analysis
Based on the daily chart, the price of gold is seen to remain in a "bearish trend". Based on technical analysis, the rise in gold is seen as an opportunity for investors to sell gold to a lower level.
Nevertheless, tonight's PCE inflation data report will give investors a decision on whether to continue pushing the price of gold to a lower level or vice versa.
The price level of $2,334 is seen as the main barrier for gold to continue trading higher, while $2,285 is seen to be the floor price of the gold market today.
If gold trades to a higher level, the price level of $2,340 and then $2,370 will be an obstacle.
But if it's the other way around, the price level of $2,277 will be the focus after the floor price of $2,285.
